|By PR Newswire||
|March 20, 2014 10:44 PM EDT||
CALGARY, March 20, 2014 /CNW/ - Northern Frontier Corp. (TSX-V: FFF) (the "Corporation" or "Northern Frontier") is pleased to announce its fourth quarter and fiscal 2013 financial results, its 2014 capital expenditure budget and declaration of its first dividend.
Selected Financial Highlights
|(in 000's CAD, except as noted)||
3 months ended
Dec 31, 2013
13 months ended
Dec 31, 2013
12 months ended
Dec 31, 2013 (1)
|Revenue||$ 14,522||$ 15,017||$ 67,167|
|as a % of revenue||20.3%||20.5%||26.2%|
as a % of revenue
|Net loss and comprehensive loss||(409)||(1,967)||$ 1,732|
|Earnings (loss) per share - basic and diluted||$ (0.05)||$ (0.74)||$ 0.16|
|Funded debt (3)||32,723||32,723|
|Weighted average common shares outstanding (4)||8,126,304||2,643,524||11,160,609|
|Common shares outstanding (4)||11,160,609||11,160,609||11,160,609|
|Common share purchase warrants outstanding||5,115,639||5,115,639|
|(1)||These amounts represent management's pro forma estimate of Northern Frontier's financial results if it had completed its business combination on January 1, 2013 rather than the actual date of September 27, 2013.|
|(2)||EBITDA (earnings before qualifying transaction costs, finance costs, taxes, depreciation and amortization, gain/loss on disposal of property and equipment and share-based compensation) is not a recognized measure under IFRS (defined herein). Refer to "Non-GAAP Measures".|
|(3)||Funded debt (loans and borrowings before unamortized debt issue costs and obligations under finance lease less cash and cash equivalents) is not a recognized measure under IFRS (defined herein). Refer to "Non-GAAP Measures".|
|(4)||Amounts have been adjusted for the effect of the 1 for 15 common share consolidation completed on February 15, 2013.|
Northern Frontier completed its first business acquisition in September 2013, by purchasing a civil and logistics services provider located within the steam assisted gravity drainage ("SAGD") Oilsands market of northeastern Alberta for $54.3 million. Central to our strategy is to build on a company with a solid foundation, through providing an expanding array of industrial services to the long-term asset base being developed in the resource sectors of western Canada. This acquisition has provided that platform, with a substantial asset base, solid customer relationships and a physical location proximate to substantial future growth opportunities within the SAGD market.
The company also completed two equity raises for combined net proceeds of $28.6 million to support growth through strengthening its balance sheet and deploying capital in anticipation of 2014 demands. As part of the second capital raise, the board of directors implemented a dividend policy to support a long-term cost of capital that will accelerate future acquisitions and growth of the business.
The fourth quarter of 2013 (post-platform acquisition) was focused on implementing financial systems and capital structure that would facilitate the transition of the business from a privately-held organization to one that will meet the expectations of the public markets.
Northern Frontier exited fiscal 2013 with a pro forma EBITDA of $14.8 million. The stand-alone trailing twelve month EBITDA of our platform acquisition was $16.6 million, exceeding initial expectations when we agreed to acquire the business. Overall, Northern Frontier's fiscal 2013 performance and post-platform acquisition financial results (effectively the fourth quarter of 2013) were relatively consistent with expectations. Financial results in the fourth quarter of 2013 were impacted by wet weather in early October, a deferral of a couple of client projects and an extended holiday break at the end of the quarter. This resulted in an increase in labor costs as a percentage of revenue and a decline in camp utilization. Overall, management is satisfied with the earnings capacity it acquired through the platform acquisition and expects to increase the earnings capacity of the business through fiscal 2014.
Management expects the first half of fiscal 2014 to have moderate activity levels compared to fiscal 2013. Demand for services is currently expected to accelerate in the second half of fiscal 2014, driven by new construction and successful production results from existing facilities within the SAGD market that the Corporation participates in. Northern Frontier also expects to see growth from its capital expenditures made in the fourth quarter of 2013, including an expansion to its camp bed capacity driven by expected employee growth and equipment fleet. In addition, the Corporation expects deployment of capital into its logistics strategy in early 2014 to start contributing to earnings growth in the second half of fiscal 2014.
2014 Capital Expenditure Budget
For fiscal 2014, the Corporation's net capital expenditure program is $14.3 million, allocated as follows:
|(in 000's CAD)||Growth||Sustaining||Total|
|Automotive||$ -||$ 355||$ 355|
|Construction and excavating||5,375||3,020||8,395|
|Estimated proceeds on disposal of equipment||(950)||(950)|
|Capital additions, net||$ 11,855||$ 2,425||$ 14,280|
Northern Frontier has declared its first quarterly dividend of $0.065 per common share, payable on April 15, 2014 to holders of record on April 3, 2014 (ex-dividend April 1, 2014). This represents an annual yield of 7.1% based on the March 20, 2014 closing price of $3.65 per common share.
Northern Frontier's audited consolidated financial statements for the 13 months ended December 31, 2013 and 12 months ended November 30, 2012 and fiscal 2013 management discussion and analysis ("MD&A") have been filed with the Canadian securities regulatory authorities and may be accessed under the Corporation's profile on SEDAR at www.sedar.com.
Management of Northern Frontier will hold a conference call on Friday, March 21, 2014, at 9:30 a.m. Calgary / 11:30 a.m. Toronto time. The call will feature remarks by Chris Yellowega, President and CEO and Monty Balderston, Executive Vice President and CFO regarding the financial results.
Conference dial-in instructions are as follows:
North America: 888-390-0549
Conference ID: 95520669
A replay of the call will be available 24 hours after the event until 11:59 p.m. EST on March 28, 2014. To access the archived conference call, please dial 1-888-390-0541 and enter passcode 520669.
About Northern Frontier Corp.
Northern Frontier's strategic objective is to create a large industrial and environmental services business through a buy and build growth strategy. Currently, the Corporation provides civil construction and excavation services to the industrial industry, primarily in the in situ Oilsands region south of Fort McMurray, Alberta. Through providing these services to large industrial customers in the steam assisted gravity drainage ("SAGD") region of northeastern Alberta, the Corporation focuses on the ongoing demand for services to support operating facilities, sustaining capital expenditures to maintain production levels of those facilities and the development of new production capacity.
The Corporation's common shares and common share purchase warrants are listed on the TSX Venture Exchange under the trading symbol "FFF" and "FFF.WT", respectively.
This news release contains forward-looking information and forward-looking statements based on certain expectations, projections and assumptions. Certain information in this news release contains forward-looking statements including management's assessment of Northern Frontier's future operations, business prospects and opportunities, management's future expectations regarding the financial performance of the Corporation, forecasted 2014 capital expenditures of the Corporation and expected payment of dividends declared. With respect to the forward-looking statements contained in this news release, Northern Frontier has made assumptions, regarding among other things: that Northern Frontier will continue to conduct its operations in a manner consistent with past operations. Although Northern Frontier believes that the expectations reflected in the forward-looking statements contained in this news release, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations or assumptions will prove to be correct. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Northern Frontier's control including, without limitation, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of exchange rates, environmental risks, industry competition, availability of qualified personnel and management, stock market volatility and timely and cost effective access to sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the forgoing list of factors is not exhaustive. Additional information on these and other factors that could affect Northern Frontier's operations and financial results are included in Northern Frontier's MD&A and other reports on file with Canadian securities regulatory authorities and may be accessed under the Corporation's profile on SEDAR at www.sedar.com. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Northern Frontier does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
This information is subject to a number of risks and uncertainties, many of which are beyond the Corporation's control. Users of this information are cautioned that actual results may differ materially. For additional information refer to the "Advisory Regarding Forward-Looking Statements" section of the Corporation's MD&A.
Selected financial information for the three and 13 month periods ended December 31, 2013 is set out above and includes the following measures that are not recognized under International Financial Reporting Standards ("IFRS") and are non-generally accepted accounting principles ("non-GAAP") measures: EBITDA and Funded Debt. This information should be read in conjunction with the consolidated financial statements for the three and 13 month periods ended December 31, 2013 and the Corporation's MD&A available under the Corporation's profile on SEDAR at www.sedar.com. Further information regarding these non-GAAP measures is contained in the Corporation's MD&A.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Northern Frontier Corp.
SYS-CON Events announced today that CollabNet, a global leader in enterprise software development, release automation and DevOps solutions, will be a Bronze Sponsor of SYS-CON's 20th International Cloud Expo®, taking place from June 6-8, 2017, at the Javits Center in New York City, NY. CollabNet offers a broad range of solutions with the mission of helping modern organizations deliver quality software at speed. The company’s latest innovation, the DevOps Lifecycle Manager (DLM), supports Value S...
Apr. 27, 2017 07:00 AM EDT Reads: 1,043
"Peak 10 is a national cloud data center solutions managed services provider, and part of that is disaster recovery. We see a growing trend in the industry where companies are coming to us looking for assistance in their DR strategy," stated Andrew Cole, Director of Solutions Engineering at Peak 10, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Apr. 27, 2017 06:30 AM EDT Reads: 11,716
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Analytic. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.
Apr. 27, 2017 05:30 AM EDT Reads: 1,196
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
Apr. 27, 2017 05:15 AM EDT Reads: 1,360
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in compute, storage and networking technologies, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/...
Apr. 27, 2017 05:00 AM EDT Reads: 2,271
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
Apr. 27, 2017 04:45 AM EDT Reads: 5,412
Judith Hurwitz is president and CEO of Hurwitz & Associates, a Needham, Mass., research and consulting firm focused on emerging technology, including big data, cognitive computing and governance. She is co-author of the book Cognitive Computing and Big Data Analytics, published in 2015. Her Cloud Expo session, "What Is the Business Imperative for Cognitive Computing?" is scheduled for Wednesday, June 8, at 8:40 a.m. In it, she puts cognitive computing into perspective with its value to the busin...
Apr. 27, 2017 03:45 AM EDT Reads: 3,704
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
Apr. 27, 2017 03:45 AM EDT Reads: 1,565
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
Apr. 27, 2017 03:30 AM EDT Reads: 804
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
Apr. 27, 2017 03:15 AM EDT Reads: 1,170
Everyone wants to use containers, but monitoring containers is hard. New ephemeral architecture introduces new challenges in how monitoring tools need to monitor and visualize containers, so your team can make sense of everything. In his session at @DevOpsSummit, David Gildeh, co-founder and CEO of Outlyer, will go through the challenges and show there is light at the end of the tunnel if you use the right tools and understand what you need to be monitoring to successfully use containers in your...
Apr. 27, 2017 03:15 AM EDT Reads: 2,126
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
Apr. 27, 2017 03:15 AM EDT Reads: 5,969
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Apr. 27, 2017 02:30 AM EDT Reads: 1,472
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
Apr. 27, 2017 02:15 AM EDT Reads: 841
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists will examine how DevOps helps to meet th...
Apr. 27, 2017 01:15 AM EDT Reads: 1,515